A,B, and C are in partnership with respective fixed capital of rupees 40,000; rupees 30,000 and rupees 20,000. B and C are entitled to annual salaries of rupees 2,000 and rupees 1,500 respectively payable before division of profits. Interest on capital is allowed at 5 percent per annum, but interest is not charged on drawings. Of the first rupees 12,000 divisible as profits in any year. A is entitled to 50 percent, B to 30 percent and C to 20 percent. Annual profits in excess of rupees 12,000 are divisible equally. The profits for the year ended 31st March , 2018 was rupees 20,100 after debiting partner's salaries but before charging interest on capital. The partners' drawings for the year were: A rupees 8,000 , B rupees 7,500 and C rupees 4,000. The balance on the partners' current account on 1st April, 2017 were A- rupees 3,000 credit ; B- rupees 500 credit ; C-rupees 1,000 debit. Prepare profit and loss appropriation account and the partners' current accounts.
Answers
Answered by
7
Answer:
Profit of the year 2018 is 23,600
Less partner salary B(2000) + C(1500) i.e – 3500
Hence, 23,600-3500 = 20,100
Less Interest at 5% A+B+C – (2,000+1,500+1,000=4,500)
Hence, 20,100-4,500 = 15,600
Profit Share Upton 12,000 A+B+C (6000+3600+2400 = 12000)
15,600 – 12,000 = 3,600
Profit A+B+C (1200+1200+1200 = 3,600)
Hence, 3,600-3,600 = 0
After taking this all into consideration, the current account of the three partners made.
Answered by
0
Answer:
no current account made in this answer and never show the partners ratio
Similar questions